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Working too hard will give you a heart attack ack ack ack

ColdWhiskey

Look how bonkers YOU went!! Calling the Denver police department and filing a complaint against one or more of your fellow co-workers for sending a letter. You set the bar for LOW childish behavior with that action, and your above post is nearly as bad.

BTW. Did the Denver PD nab your perpetrator? Do your have some testifying to do in court to fully punish them and make sure it never happens again?

AncientAliens

Wait what?

ReserveCA

Anyone.....
In “layman’s terms” what does the appendix to LOA 1 mean?

OpenClimb

Here’s my best attempt at explaining it:

Paragraph A says that the Company will make true up contributions as they have in the past for calendar year 2018 contributions. This provision existed because the terms of the Company matching in the old contract allowed for a maximum of 5% matching from the Company on a per paycheck basis, but still provided for a maximum of 5% matching on your annual earnings.

As an example, let’s say you didn’t contribute anything for the first 3 months of 2018. Starting in April, you decided you’d get aggressive about retirement savings and you started putting 25% of each paycheck in the 401k. In fact you did this for the remainder of 2018 until you maxed out the over-50 limit for 2018 of $24,500.

To keep the math simple, let’s say your gross earnings each month were $15,000 so you were putting in 25% of that or $3,750/month. The Company only matches 50% of the first 10% of your earnings, so they’re only going to put in $750/month ($15,000 x 10% x 50%) starting in April because you didn’t contribute anything for the first 3 months of the year.

Carrying all this out, you’ll earn $180,000 in 2018. The maximum company match of 50% of the first 10% of your earnings is $9,000. Over the course of the year, you will have maxed out the IRS over-50 cap of $24,500 which is also over 10% of your earnings, so you *should* receive the full potential $9,000 Company match... only you didn’t because there was zero match when you didn’t contribute anything for the first 3 months and the match was limited to 50% of the first 10% for those months you *did* contribute. Hence, the concept of true up contributions.

If the Company contributed $750/month ($15,000 x 10% x 50%) from April through December, that’d be $6,750. ($750 x 9 months) The true up provision says that they’ll contribute an additional $2,250 to your 401k account by January 31, 2019 to bring their total matching up to 50% of the first 10% of your earnings.

That’s Paragraph A. I’ll do Paragraph B in the next message because this is already ridiculously long.

OpenClimb

Here’s my best take on Paragraph B:

The Company made its normal rate of retirement contributions for the first paycheck of 2019. If you put in at least 10% of your earnings, they added another 50% of your 10% to your 401k. In addition, they contributed whatever “defined contribution” you were entitled to under the old CBA Section 16.C.1. ranging from 2.2% at year three longevity to 6% for 9 or greater years of service.

For an easy example, if a senior person (greater than 9 years) put in 10% or more, the Company contributed a total of 11% to that person’s 401k for that paycheck.

Paragraph B just says that if the new CBA passed, they’d go back and make up the difference between the new CBA’s automatic 12% and whatever they already did under the old CBA. For the senior person example in the previous paragraph, this means the Company would contribute an extra 1% for that first paycheck.

The people who would benefit most from Paragraph B are those who didn’t contribute anything at all or those who received less than the maximum 6% defined contribution under the old CBA defined contribution plan.

I hope this helps. I’ve intentionally excluded any personal commentary on what I think of the new retirement provisions in hopes of providing purely factual, informative interpretation. If anyone disagrees, I hope it’s because of an error in my understanding and not because of any perceived bias on my part.

CantStayAway

The latest rumor is that the company is just going to pay the 12% DC starting with the January 5 paycheck to avoid the mess that is described above. I don’t know if it’s true, but that’s what people are saying.

ReserveCA

Thanks.....
With a passed TA
Will the 2019 12% "true up" be paid in 2020? (Jan)

V1 McFlyerson

Thanks, OpenClimb, great examples.

The FAQs now state:

I don't recall any emails or dissemination of this change, other than the FAQs. Maybe I just missed it.

There are essentially 2 true-ups in the new contract.

1. Company contributions that cannot be deposited due to already hitting the 56k/62k limit will be paid directly to the Pilot no later than thirty (30) days following the end of the Plan year.

2. Company contributions that cannot be deposited due to already hitting the IRS 280k compensation limit, that the IRS imposes for allowing company retirement contributions, will be paid directly to the Pilot no later than thirty (30) days following the end of each quarter.

This how I read Section 28, paragraph D. on Page 28.2 (218).

drivinghome

I know I’ve seen it in this thread but now I can’t find the new pay scales. Anyone willing to post? I have an interview coming up and I’m trying to make some long term decisions.
Thanks in advance.